Magic Pump Up The Dollars

The Team Touts Its Economic Impact, But Some Experts Doubt The Math

Since the first tip-off in 1989, the Orlando Magic and related holdings have generated more than $1.2 billion of economic activity in Central Florida, according to a study released Monday by the team.

That activity has ranged from building a $50 million sports-and-health complex in Maitland to Magic fans stopping by a bar for drinks after a game.

"I think the RDV Sports entity [owner of the Magic] has a profound impact on the Orlando economy," said Bill Rhoda, president of CS&L of Dallas, the firm that conducted the analysis.

Some economists question such reports. They say sports teams, rather than draw money to a community, suck up existing dollars instead.

"You've got to ask the question: Where did this money come from?" said Robert Baade, an Illinois economics professor and expert on stadium financing and professional sports.

Baade maintains that typical NBA fans cut back on other spending -- such as going to movies or plays -- to attend games.

Rhoda disagrees. Most Magic patrons, he said, would save their money or use it to go watch an out-of-town squad if they didn't spend it on a local NBA game.

Whatever the case, Rhoda's report comes at a critical time for the Magic. Team executives have initiated talks with area governments about using tax dollars to build a new arena for the team or to renovate the existing facility.

Community and political support has been faint, with many questioning how the TD Waterhouse Centre -- opened 11 years ago at a cost to taxpayers of $110 million -- could be obsolete.

The Magic open their regular season at home tonight amid high expectations generated by the signing of free agents Tracy McGrady and Grant Hill. Combined, the two will make more than $18 million this year.

Player salaries were considered in the economic-impact study, though less than 40 percent of the payroll was used in the calculations. The reason: few of the players live year-round in the area.

The Magic were not the sole focus of Rhoda's study. He looked at all of RDV Sports, including the Solar Bears hockey team, the Miracle women's basketball squad and the Maitland sports complex.

Even more important than cash, Rhoda said, is the effect the Magic have on Orlando's collective psyche. The community rallies around the team, he said, especially when it plays well.

There's also the TV exposure: The Magic have participated in 150 nationally televised games since 1989.

"They help advertise the Orlando market," Rhoda said.

Tom Kohler, who runs the Downtown Development Board, says it is difficult to measure the Magic's economic boost, though he is certain more people visit the center city on game nights.

"It brings a focal point," he said. "Downtown is the home of the Magic."